Income Tax

Finance Act, 2025: Trusts Get 10-Year Registration Validity – No Re-Application Needed!

🚨10-Year Validity for Trust Registrations – Big Relief!

The Finance Act, 2025 has brought a major relief for trusts and institutions registered via Sec12A(1)(ac)(i) to (v)
📌 Earlier, registrations under these clauses were valid for only 5 years.
✅ Now, if the total income of the trust (before applying Section 11 & 12) did not exceed ₹5 crore in each of the two financial years preceding the year of application, the registration shall now be valid for 10 years instead of 5.
Eg. If trust applied for renewal application in FY 2020–21, then the Income for FY 2018-19 & 19-20 shall not exceed 5 Cr (before claiming exemption under Sections 11 & 12).

🔖What This Means for Existing Trusts:

✔️ Trusts that applied for renewal and were granted a 5-year certificate valid till AY 2026–27 are covered under Section 12A(1)(ac)(i).
✔️These trusts are now automatically eligible for 10-year validity, if they meet the ₹5 crore condition.
📄 No need to re-apply
📜 The Income Tax Department shall issue fresh certificates with 10-year validity, even if a 5-year certificate was already issued earlier.

✅ A rare welcome step towards ease of compliance and long-term clarity for charitable and religious institutions. 

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